nkycvb strategic analysis
TRANSCRIPT
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The Northern Kentucky Convention and Visitors Bureau
Analysis
2012
Amanda Batta, Tiffany Hopkins, Kelly Parker, and Nicole Stadtlander Dr. Stephanie Hughes’ Business Policy Class – Fall 2012
12/5/2012
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Table of Contents
Synopsis ......................................................................................................................................................................... 3
Overview of NKYCVB ................................................................................................................................................. 5
Environmental Trends Analysis .................................................................................................................................... 5
Five Forces Analysis ................................................................................................................................................... 14
Competitive Analysis .................................................................................................................................................. 19
Strategic Group Analysis ............................................................................................................................................. 24
Internal Analysis .......................................................................................................................................................... 27
Resource and Capability Analysis ........................................................................................................................... 27
Value Chain and Outsourcing Analysis .................................................................................................................. 30
Financial Ratio Analysis ......................................................................................................................................... 31
Balanced Scorecard Analysis .................................................................................................................................. 32
Competitive Strength Assessment ............................................................................................................................... 34
Business (and Corporate Level) Strategies Assessment .............................................................................................. 40
Extent and Type of Firm’s International Strategy ....................................................................................................... 42
Composition of Board Members ................................................................................................................................. 44
Structure of the Firm .................................................................................................................................................... 45
Issue Identification ...................................................................................................................................................... 46
Proposed Strategies and Implementation Schedule ..................................................................................................... 47
Incentives ................................................................................................................................................................ 47
Social Media............................................................................................................................................................ 50
Seminar ................................................................................................................................................................... 52
Partnership .............................................................................................................................................................. 54
Background and Information .............................................................................................................................. 54
Benefits to NKYCVB ......................................................................................................................................... 58
Competition ........................................................................................................................................................ 59
Program Name/Questions ............................................................................................................................................ 63
NKY’s Happenin’ ................................................................................................................................................... 63
Proposed Implementation Schedule............................................................................................................................. 65
Proposed Means of Evaluation of Strategies ............................................................................................................... 68
Timeline .................................................................................................................................................................. 68
Ensuring Achievements Through Controls ............................................................................................................. 69
Additional Notes .......................................................................................................................................................... 71
Works Cited ................................................................................................................................................................. 72
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Synopsis
The Northern Kentucky Convention and Visitors Bureau is currently in the process of
creating an ambassador program that will help local businesses, employees, and citizens become
more informed about the Northern Kentucky area in addition to being aware of what events and
attractions a visitor or tourist might want to attend while visiting the area. The bureau has asked
for help with a Marketing Plan, a Program Name, and the first tier (of a three tiered test) to be
created. This detailed analysis includes strategies to solve these problems along with other key
information that can be used to benefit and inform NKYCVB of their competitors and industry
as a whole.
The first section of this report focuses on the internal and external factors that affect the
NKYCVB. From the environmental trends to key competitors as well as an assessment of
NKYCVB from an internal perspective, the main focus is the breakdown of the industry in every
aspect in addition to understanding how competitors work and where NKYCVB stands among
their competitors. This is in detail more in the first 39 pages of this analysis report.
The second section is focused on the NKYCV Commission, along with International
Business and the structure of the firm. These are important topics that need to be analyzed before
creating strategies due to getting a better understanding of how NKYCVB functions and where it
stands on a global perspective.
Strategies are then proposed. The first strategy that is proposed is the use of incentives
with the ambassador program being created by the NKYCVB. These incentives range from lapel
pins for completion of the program from the participants perspective along with the companies of
these students also getting recognized for promoting the program and informing participants of
the benefits and rewards that they can receive. A second strategy is the increase of monitoring
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social media sites. Looking at all social media platform, the NKYCVB is lacking. Twitter is
outshining Facebook which is outshining Pinterest which is more existent than LinkedIn. With
an increase of posts, NKYCVB can bring more awareness to themselves along with the
upcoming ambassador program. A third strategy is to create a seminar that allows business
owners, managers, employees, and local citizens to become informed on the program in hopes
that these attendees will then participate and be the first to take the test once it is launched. A
forth and final strategy is to partner with a great, new mobile company, called Text and the City
to help promote Northern Kentucky through a mobile device. Think of this as the yellow pages.
It will help navigate visitors to local ‘hotspots’ and attractions if no one is around to help them.
With those strategies in place, a name to be proposed for the program is discussed.
Tourists want to know what is happening in the Northern Kentucky area and for that reason, the
name NKY’s Happenin’ was created. This name has a modern twist that will be appealing to all
target markets that will be attracted to taking the test in addition to tourists being aware that the
program exists. Along with the name of the program, a list of questions was created for the first
tier of the program to help show NKYCVB the format or outline that should be used when
created the second and third tier.
This report finishes up with discussing a timeline of when these strategies need to take
place and the next steps that need to take place in order to get the maximum opportunity for
NKY’s Happenin’. Contact information is given at the end for any additional information or
help.
Our team is excited to help launch this great program to the Northern Kentucky area and
are honored to of had the privilege to work with the Northern Kentucky Convention and Visitors
Bureau with this topic over the past 16 weeks.
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Overview of NKYCVB
The Northern Kentucky Convention and Visitors Bureau (NKYCVB) is located in the
heart of Covington, Kentucky. The NKYCVB serves three Northern Kentucky counties: Boone,
Kenton and Campbell counties. The NKYCVB is the largest promoter of the three Northern
Kentucky counties and promotes the largest events in those areas.
The NKYCVB intends to create an ambassador program that will be offered to
employees who work in the hospitality industry (such as restaurants, hotels, bars, etc.)
throughout Northern Kentucky. This program will educate employees so they will be able to
interact with and inform tourists and visitors of events happening throughout Northern Kentucky
on any given date along with the best restaurants and local attractions to visit while in the area.
This program will include an exam testing employee’s knowledge on Northern Kentucky and its
attractions. It is a goal of the NKYCVB to make the test both entertaining and informative.
Our intention with the Northern Kentucky Convention and Visitor Bureau is to help with
the creation of the ambassador program being created in addition to generating incentives and a
marketing plan. A name for this program will also be produced and presented in this company’s
strategic analysis. NKYCVB will be able to launch a successful and worthy program that will
attract citizens as well as inform visitors.
Environmental Trends Analysis
The Northern Kentucky Convention and Visitor’s Bureau’s (NKYCVB) main objective is
to positively impact the Northern Kentucky economy through conventions, meetings, and visitor
expenditures and ultimately create a high percentage of visitor return. In order to maintain the
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company’s existing efforts to maximize visitors’ expectations and experiences in the Northern
Kentucky (NKY) area, NKYCVB can utilize multiple analyses to determine the external factors
that have a direct and/or indirect effect on their organization. One of these analyses includes the
PESTEL analysis that concentrates on the environmental trends in the NKY area. The PESTEL
analysis identifies the merits the company can leverage and any possible external risks they can
mitigate in order to uphold their business-level strategy. These forces are within the following
six segments: political, economic, sociocultural, technological, ecological and legal.
Political
From a political standpoint, there are some tax elements that alter a visitor’s decision to
visit this area. One particular advantage that has a direct effect on a visitor is the difference in
“bed tax rate” between NKY and Cincinnati hotels. NKY has an advantage over Cincinnati on
this element because NKY’s rate is distinctively lower than the hotels located in Cincinnati. The
lower rates benefit the visitors and ultimately the NKY area becomes more attractive and overall
creates revenue across the area. Local and state governments like to impose these kinds of hotel
taxes because they weigh heavy on primarily out-of-town guests, which eliminate the chance of
levying the tax. Thankfully, the NKY area already offers lower bed tax rates compared to the
surrounding competitors; however there is still the possibly those rates could increase
eliminating this advantage all together for the NKYCVB.
Unfortunately, there are other tax issues that can play a major part within the NKY area
that could create a loss. Companies that are successful and assist in bringing more visitors to the
area for conferences or meetings can face difficult decisions when presented with incentive
packages from other regional cities. For example, Omnicare was offered an $8 million dollar
incentive package by Ohio and Cincinnati, forcing them to move downtown. (Pilcher) This is a
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major political tax conflict that does not help keep Omnicare’s business and conference
possibilities in NKY.
Another tax element that falls under the political aspect involves a tax credit for the film
industry. Film production companies have the choice between a sales tax refund incentive and
an income tax credit incentive up to 20% of approved expenditures. (Greater Cincinnati &
Northern Kentucky Film Commission) Unlike the incentives to draw companies out of the area,
these kinds of incentives help attract major revenue players. This incentive related to the film
industry also overlaps with the sociocultural segment of this analysis.
Economic
Economically, the NKY area has recently seen a large increase in growth development
and job opportunities. Business growth has shown almost a 2% increase since 2009. Although, it
is on the rise, it has not surpassed the economic position pre-recession. (Pilcher) Clearly the
growth within this area is a major benefit. This kind of rise within the economy can open more
doors to both potential visitors and the NKYCVB. This is a good indicator that the businesses
across the NKY will be profitable.
This rapid growth rate could continue to rise due to some of the future (proposed)
projects within the NKY area that include the following: Purple People Bridge, Brent Spence
Bridge, Walking Path, and CVG Airport Hubs. Some of these projects have the potential to
bring additional economic value to NKY and while others could create obstacles for visitors to
this area. These kinds of forces are good to identify so NKYCVB will have a better
understanding of what kind future economic status NKY has to work with.
Just recently there has been discussion of creating a hotel, retail and entertainment development
on the Purple People Bridge located in Newport. The idea of could create an economic boost for
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this area. Additionally, this development could generate more job opportunities and
knowledgeable employees to demonstrate the best service to out-of-town guests. The bridge
connects two riverfronts in Cincinnati and Newport and with this new development of attractions
there would be an overall positive impact to the businesses in both cities.
On the other hand, just a few miles south down the river, there has been a major bridge
project in debate for years involving the Brent Spence Bridge. For years there has been
discussion to rebuilding the bridge because of years of deterioration due to the massive influx of
commuters. There have been thousands of state dollars spent on multiple studies, roadway
alternatives, and town meetings in determining the best execution plan. Even though the new
bridge is desperately needed in this area, considering it is the backbone of commerce and travel
in this region, it may pose a temporary halt in retail and entertainment profitability. If there are
not favorable roadway alternatives to the businesses along the Riverfront, those businesses will
suffer greatly and ultimately lose their appeal to any outside visitors.
Another smaller project is the past proposal of the Covington Riverfront Commons Trail.
This multi-use trail will be four miles in length and run from Covington to Bellevue. Although,
this may be more attractive to local residents, it does offer visitors an alternative route of
transportation to visit all the riverfront cities. Although this maybe a smaller development, it can
have just as a positive impact as larger developments.
Finally, the Northern Kentucky area is home of one of the best airports nationwide,
Cincinnati/Northern Kentucky International Airport (CVG). The airport is just minutes away
from the riverfront cities in NKY and Cincinnati. Additionally, CVG is partnered with one of
the biggest airlines, Delta. However, just recently CVG has reduced their size to only one
available concourse; this creates the problem of lowering the flight availability. On the positive
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side; however Delta, who has historically been known to have very expensive prices, has reduced
airfare from 5 to 60 percent.
Additional economic growth factors that support the area on the rise include the level of
employment and wage indicators. Although, the unemployment rate is only down slightly from
2010 to 2011 (1.5%), it does show growth. Another important factor that can be appealing to
local workforce is the average weekly wage. Compared to the rest of the state, in 2010, Northern
Kentucky had an average weekly wage of $788, which is nearly $50 more than the rest of the
workforce in Kentucky ($745). True, this maybe a small incentive for those looking for job
opportunities but still effective at that the same time. If the workforce knows they have above
average income, there is a good chance they are more willing to display the best customer
service to any kind of visitors to the area. However, just across the river, Ohio’s average weekly
wages are over $800. (Bureau of Labor Statistics) This poses the problem of attracting a potential
workforce from the Kentucky side.
Sociocultural
One major advantage the NKY area offers to local businesses are the large number of
colleges and universities located in the Tri State region. Some of these educational institutions
include the following: Northern Kentucky University, University of Cincinnati, Xavier
University, Cincinnati State Technical College, and Gateway Community College. These
institutions feed into the NKY area’s job opportunities. The benefit to having so many graduates
from these schools available to work in the NKY area, is the thorough knowledge they bring to
the table. The students that are about to graduate have the ability to market themselves to local
thriving businesses as a crucial element to their team because they have the knowledge of the
local area and most importantly are aware of the effects the local economy may have on their
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company. NKY presents a local culture that concentrates on thriving in the education process,
which in turn makes the surrounding businesses viable. This sociocultural element of education
is indirectly attracting more businesses to the area as well as visitors.
As mentioned before, the film industry incentive also assists in bringing out the art
culture in this area. This industry presents an opportunity to visitors and especially students that
attend the Cincinnati School of Performing Arts. Those students have the chance to become a
key player when film productions come to the area. They are an intricate part of helping create
revenue across the board to the NKY area. There have been many movies filmed in this area
over the years; to name a couple Rain Main and Ides of March. The film industry creates large
revenue and NKYCVB can use this as a positive reinforcement to NKY by making the area
readily available to production teams.
Along with the film/media industry, the NKY area is also very prominent within the
music culture. Hundreds to thousands of musicians circle through the Tri State area that
generates revenue among the local businesses and creates a reason for visitors to come back to
the area. For the longest time, Riverbend Music Center was one of the only large music venues,
which is actually located in Ohio. However, in 2008, The Bank of Kentucky Center was opened
as a new venue that has the ability to hold a variety of events. Now the NKY area has a larger
music venue to take advantage of and to help create a larger percentage of visitors to return. The
Riverbend Music Center still generates a large profit for the city of Cincinnati and creates
competition for The Bank of Kentucky Center. Overall these cultural elements are what help
assist NKYCVB leverage their strong points throughout the NKY area.
Technological
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Technology is constantly changing and it is one of NKYCVB core competencies to stay
up-to-date with any external technological developments. Just this past summer a recent startup
company, Text and the City, entered into the NKY market offering businesses and communities
an electronic connection via simple text messaging. This company is also teaming up with the
NKU College of Informatics for structured feedback and revamping. The idea of this
technological innovation is to alert businesses of any local news and to create a connection
among one another through “hyper-local markets.” (Henderson) This is also a great idea for
visitors that want to stay connected to the local business’ availability and offerings.
NKYCVB could use this technology to help market the businesses within the NKY area.
It is also a great way to promote the destination education program NKYCVB is promoting to all
local businesses/individuals that have any kind of contact with visitors. NKYCVB could also
sync up their event calendar as text messaging alerts to individuals. Text messaging and mobile
alerts have been on the rise in the technology industry and it would benefit NKYCVB to partner
up with companies like Text and the City. At the same time; however, even though this can be a
great way for businesses/individuals to stay connected, there needs to be structured policies in
place that will not allow this feature to become an annoyance to people. NKYCVB does not
want negative attention from visitors and/or businesses involving an overload of information.
Earlier this year the National Risk Management Research Laboratory held a workshop in
Cincinnati, educating small businesses on the advantages and funding resources the Small
Business Innovation Research and the Small Business Technology Transfer departments offer.
These programs allow small businesses to develop on their technological abilities and ultimately
become profitable. This kind of funding is available through a three phase process; however this
is the kind of technological developing that needs a strong presence in the NKY area. Through
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the NKYCVB’s own technology resources i.e. website, they can use this to attract businesses and
outside of the state businesses to relocate to an area that is thriving in the technology industry.
Ultimately these are steps into creating jobs, expanding technology, and creating revenue, all
which can benefit visitors and businesses from outside this region.
Ecological
NKYCVB is an organization that is in the heart of downtown Covington, an area that
thankfully does not have major ecological factors locally. However, with that said, the NKY
area is indirectly affected by weather and climate occurrences all over the nation. Hurricane
Sandy is a prime example of how local businesses can have an indirect effect. Hurricane Sandy
shut down major airports near the East Coast and in the New England states, which temporarily
created a reduction of tourism to this area. Additionally, Hurricane Sandy’s greatest direct effect
to the NKY area was the increase of flooding. Flooding along the Ohio River is one of the major
ecological events that have the potential to bring a negative impact to businesses along the river.
When flooding occurs it creates soil erosion and land shifting. The Riverfront Common Trail is
a proposed project involving a multi-use trail connecting the river cities of NKY. Before this
trail can be incorporated along the river, studies must be conducted to evaluate this kind of land
erosion and shifting. The Brent Spence Bridge Project is also another example of using
environmental studies. Thousands of dollars have gone towards land studies and evaluations in
order make sure the different land masses will withstand the alternative routes the state(s) present
to local businesses and homeowners. These kinds of studies in this area are the most challenging
because of the high cost and the delays they create for potential businesses.
Overall ecological factors have the ability to not only affect visitors to the area but
businesses that are within the region as well. Unfortunately, weather is almost unpredictable and
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unstoppable and NKYCVB will not be able to eliminate these negative forces when they occur.
Instead, NKYCVB can turn a negative into a positive by promoting assistance for disaster relief
for areas in the country that have been affected in a worst way, just as NKYCVB has currently
displayed on their website. This kind of positive attention allows outside communities and
governments know that the NKY businesses and citizens care about the well-being of America as
a whole. It also encourages other local businesses to do the same in the time of need.
Legal
One major difference that exists for NKY businesses lies within the smoking law(s)
between Kentucky and Ohio. The smoking laws have been addressed over the past several years
and certain exemptions have been made. In 2006, Ohio became 100% smoke-free in all public
places. (Americans for Nonsmokers’ Rights) Between 2010 and 2012, the NKY counties
gradually became smoke-free in public places. However, in Kentucky some businesses are
granted exemptions, primarily drinking establishments. The exemptions include split ventilation
systems and/or “split-shift.”
These exemptions can be considered both advantages and disadvantages depending on
the individual’s preference. For the NKY area, having the availability to smokers is an
advantage because Ohio does not offer this option at any of hospitality businesses. Kentucky
stands out from the 36 states that are completely 100% smoke free. (Americans for Nonsmokers’
Rights) It can be debated however that allowing some businesses (mostly bars) to continue to
have smoking establishments can discourage potential customers/visitors. NKYCVB focuses on
individual visitors; however they have a larger section of trying to attract corporate events and
business groups that will bring more revenue. It is more likely that larger groups would go to an
area that is completely smoke free.
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Five Forces Analysis
In order for NKYCVB to compete with the programs their competitors have available,
they will need to identify any and all threats. Threats may occur from any of the five forces:
Threat of Entry, Power of Suppliers, Power of Buyers, Threats of Substitutes, and Rivalry
Among Existing Competitors. The threats may come individually in staggered intervals or,
NKYCVB could face multiple threats at the same time once their ambassador program is
launched and gets publicity. The likelihood of competitors, close ones at that, increasing their
competition is strong and so the following will help analyze these five components to a more
detailed degree.
Threat of Entry
The entry barriers for convention and visitor bureaus are high for its industry.
Convention and visitors bureaus serve many counties within its region and try to have a
competitive advantage over other convention and visitors bureaus to draw visitors and companies
to their region instead. It is estimated that convention and visitor bureaus are in the mature phase
of its life cycle due to web-based technological change in conference and convention
arrangement, travel information and packaging, distribution, reservations and bookings, and
sales.
Of the many entry barriers that each convention and visitors bureaus face in today’s
marketplace, some of the more prominent ones are capital costs, organization (complex
operations are necessary for success), regulations (legal obstacles), and customer loyalty
(existing businesses have strong market advantage). Although each is important, perhaps the
customer loyalty aspect is the most substantial. It is the repeat client that sustains any business.
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Each region, often serving three counties in each region, has its own Convention and
Visitors Bureau that try to make their locale more appealing than the other by offering various
incentives like more local events, appealing to a wider audience (for example high schools for
graduations), and financial incentives (a buy one/get one offer), and the ability to customize the
building to suit their clients’ needs.
Because there are often several convention centers within each region, in our case a very
close proximity, offering more specialized programs and events can be used to create obstacles
for the other centers. You now become “the competition” that everyone else tries to beat. The
threat of entry is high when new entrants into the field expect that the incumbents will not or
cannot retaliate; the customer switching costs are low; and capital requirements are low. It is at
this level where the incumbent must be willing to make hard financial decisions to retain their
customer base. Customers want more ‘bang’ for their buck and will go where they can get it.
Power of Suppliers
Suppliers have power when they are offering a product that is unique and differentiated
from the competition and when a company faces high or low switching costs. Suppliers know
they have the upper hand when competition among other suppliers is low. This gives companies
more of an incentive to choose a particular supplier (which means more loyalty to a supplier).
Suppliers to the NKYCVB include local restaurants, various stores, lodging (hotels), and
attractions. Many of the lesser known businesses tend to get overlooked when there are popular
businesses and attractions. These suppliers to NKYCVB are able to offer special promotions to
the guests, which encourages these guests to spend more time and money in their establishments.
It would behoove the NKYCVB to include the lesser known businesses in their itinerary of
attractions, thereby increasing customer satisfaction. Being able to offer the customer their
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choice of attractions, large versus intimate, the NKYCVB can position themselves as the leader
in client satisfaction. And satisfaction equals revenue.
Power of Buyers
The NKYCVB is a large, well known industry that provides strong business to suppliers
and the surrounding businesses. Because they provide so much business for suppliers,
NKYCVB is able to ask for a lower rate than other companies receive. This is an incentive for
the suppliers since they want the continued business.
Since the NKYCVB is a large business, they have a strong bargaining power when
dealing with companies such as hotels and restaurants. Often times, suppliers will give buyers a
discount for partnering with the company due to the increased business from recommendations
to other customers. The down side to this is, of course, the smaller, lesser known business tend
to get pushed out. There is no way for these businesses to compete with the larger ones when it
comes to offering discounts or other incentives.
Many times these small businesses operate on a shoestring budget and cannot afford to
offer financial incentives. However, what they can offer is the enticement of great customer
service and the personal touch that sometimes gets lost when you deal with a larger supplier.
Again, NKYCVB must include these smaller businesses because it benefits the NKYCVB by
offering the client choice.
Threat of Substitute, Products or Services
The NKYCVB has several other competitors that offer similar but very distinct services.
Often these competitors can offer these services at a better fee with better service. One of the
NKYCVB’s competitors, Duke Convention Center, is located less than five miles away.
Because the Duke Convention Center is merely a river away, it reduces the meeting and
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conference opportunities to the Northern Kentucky Convention and Visitors Bureau. However,
NKYCVB has as many if not more attractions and that can put the Duke Convention Center at a
disadvantage.
NKYCVB’s location is better than most. They are easily accessible with three major
interstate highways, the Cincinnati/Northern Kentucky airport nearby, and every major hotel
brand is represented. Logistically, it really is better to select the NKYCVB over the Duke
Convention Center simply because you would have less traffic congestion trying to get to the
facility. The bridges leading into Cincinnati are known for their overcrowding, whereas one can
simply take the Covington exit off the Interstate and avoid the Cincinnati bottleneck. Any
entrance into Cincinnati poses the problem of traffic jams. Covington is just easier to navigate in
to and out of.
Since the offerings of both convention centers are so similar, the very ONE thing that sets
the Northern Kentucky Convention and Visitors Bureau above the rest is easy access. And if
you can remove that impediment from potential clients, they will select you for their provider.
Rivalry Among Existing Competitors
The NKYCVB considers their competitors to be: Columbus, Ohio; Dayton/Springfield,
Ohio; Lexington and Louisville, Indianapolis, Indiana; Pittsburg, Pennsylvania; St. Louis,
Missouri; Nashville and Charlotte Tennessee. Often these competitors are able to attract clients
from around the country with better customer service and better accommodations. With intense
rivalry among the competitors, price discounting, industry profitability, increase advertising and
improved service all become a main focus.
But here is what makes NKYCVB a sure winner: The NKYCVB guarantees a
“commitment to service by the entire hospitality community and declares that if a customer is
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not completely satisfied with the service they receive, they will refund one day’s rental in the
NKU Convention Center.” When a facility can offer a guarantee like that, coupled with such a
beautiful city, amenities, and great customer service, why would anyone chose to go elsewhere?
NKYCVB wants your business and they are willing to go the extra mile to get it.
Yes, many corporations are choosing video conferencing in today’s business world. The
emphasis in some companies seems to be on completing just the task at hand. However,
NKYCVB isn’t just offering a place to hold your meetings. The NKYCVB is offering an
experience that will leave the customer with a sense of appreciation, satisfaction, and relaxation.
It can complement a business’ goal of appreciating their employees. And that appreciation
translates into better production which means increased revenue.
Reflection
By using the Five Forces, the NKYCVB is able to determine how to surpass their
competitors by offering a better product and better service. They can determine if an existing
competitor will introduce the same product at a better price or which competitors are getting a
bigger bang for their buck. In other words, which Convention and Visitor Bureau is
outperforming the NKYCVB. Also by using the five forces, they are able to negotiate a better
price with their suppliers. If the suppliers are unable to meet the bottom line of the NKYCVB,
NKYCVB will be able to negotiate and obtain a better deal and a better product with a different
supplier.
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Competitive Analysis
The Northern Kentucky Convention and Visitor’s Bureau, also known as NKYCVB,
have a handful of competitors that they compete with, although among those there are two key
competitors that are worth analyzing; the Lexington Convention and Visitor’s Bureau as well as
the Charlotte Convention and Visitor’s Bureau. Both of these competitors currently have what
NKYCVB is trying to create; a program that helps local citizens and employees in the hospitality
and food service industry gain knowledge about their designated cities in order to help tourists
when they have questions about the area and what attractions are best to visit based on their
personal interests. These cities ambassador programs, as they call them, seem to be a great
comparison to what the NKYCVB would like to create. More analysis into these cities’ current
programs will be looked into in a way that will help NKYCVB benefit and understand what key
things they can use from each cities programs in order to create a similar program that will
ultimately be better, or have a competitive advantage compared to their competitors. We will
first begin looking into Charlotte’s current ambassador program that is ‘fit for royalty’.
Nicknamed the Queen City, Charlotte and its resident county are named in honor of
Charlotte of Mecklenburg-Strelitz, who had become queen consort of British King George III,
the year before the city's founding. Due to this nickname, the ambassador program created the
name, The Crown Ambassador (CA) Program. Developed for the hospitality and tourism
professional, this program provides information about Charlotte's history, attractions, and events
along with map orientation and ways to navigate the city. Designed for the front line employee,
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competency is achieved through participation in a seminar, city tour and successful completion
of an exam. Additionally, Charlotte Crown Guides has partnered with Goodwill of the Southern
Piedmont to provide Crown Ambassador Certifications to students enrolled in the Goodwill
Hospitality Training classes. Since launching the Crown Ambassador Program in December
2009, over 200 hospitality and tourism professionals have participated from over 30 businesses
and organizations (Crown Ambassador Program). Additionally, the program has added the
Hospitality and Tourism program at Goodwill Industries of the Southern Piedmont whose
students now achieve the Crown Ambassador certification as a part of that program. The Crown
Ambassador Program was created by two women, Genie Hufham and Mary Schultz, who have
worked both collaboratively and individually in the local tourism industry to support and
promote Charlotte as a destination. This program has partnered with multiple Charlotte tourism
sites along with Charlotte’s Convention and Visitor’s Bureau. Along with Charlotte’s
Convention and Visitor’s Bureau and Goodwill, the Crown Ambassador Program also partners
with the Greater Charlotte Hospitality and Tourism Alliance as well as being a member of the
Charlotte Commerce (Crown Ambassador Program). With these partners and alliances, word of
mouth seems to be the way that this ambassador program is marketed to the public.
A few important notes to make about the ambassador program are the price, the time, and
the opportunity to take the program. At the top of the list is the price. The current price to
become a Crown Ambassador is $125 per person. On top of that large amount is the fact that this
price is non-refundable. If something comes up personally with you and you are unable to make
the session, you will be assigned to the next session that is scheduled instead of receiving your
money back. Second, is the timing of the event. It seems that the opportunity to take the class is
very limited to the public. From searching on the Crown Ambassador Program website,
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charlottecrownguides.com, there are four opportunities a year to register for the six hour session
that includes a three hour lecture, followed by a three hour tour of the city. The lecture covers the
following topics: Customer care/Professionalism, statistics and history of the city, map
orientation and transportation options, attractions, venues, dining, shopping and nightlife, annual
events and Resources. Following the lecture, is the three hour city tour which includes the
following: Center City Charlotte’s Four Wards, a stop at the visitor info center, driving
directions, map orientation and transportation options, as well as Neighborhood attractions.
Following this six hour event, a competency test is to be taken to evaluate how well you took in
all the information that was given to you during the event. This seems like a lot, and it is for a
citizen to have to participate in.
Although this may seem like a great procedure, a better approach can come about from
the NKYCVB from looking at the analysis of the Crown Ambassador Program. From the hassle
of registering for the event as well as having to request off work to attend the session to paying
for this certification seem to be big problems with the programs’ layout. The Crown Ambassador
Program strives to inform citizens of the city to Make Charlotte into the “Premiere Regional
Destination”, but do they have the best strategy is the question to ask. Charlotte is not only the
competitor that the NKYCVB has to compete with. Lexington is even more of a competitor than
Charlotte due to it being located only 80 miles from the NKYCVB.
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The Lexington Convention and Visitor’s Bureau (CVB) has a bit of a different approach
to their ambassador program. A third party is used for Lexington CVB instead of creating a
unique one themselves, although it is termed the Bluegrass Tourism Ambassador Program.
Launched in February, 2008, the Bluegrass Tourism Ambassador program creates a pool of front
line staff and volunteers who are specially trained to interact with visitors. This training helps
ensure that the city conveys consistency in message, accuracy in details and a high level of
hospitality throughout the region. The primary goal of the program is to educate participants
about the tourism product. Key components of the course are: the impact of tourism, navigating
the Bluegrass Region, knowing the best information resources, exceeding customer expectations
and cultural competence (Lexington, KY - Horse Capital of the World). The Lexington
Convention and Visitors Bureau contracted with renowned hospitality trainer Mickey Schaefer,
owner of Mickey Schaefer & Associates and founder of the Tourism Ambassador Institute to be
the accredited provider for Certified Tourism Ambassadors. Citizens, who decide to go through
the Bluegrass Tourism Ambassador training and pass the exam at the end of the course, receive a
national certification with the designation of "CTA" (Certified Tourism Ambassador) through
the Tourism Ambassador Institute (Lexington, KY - Horse Capital of the World). This program
seems to be marketed through word of mouth in the Lexington area. Along with word of mouth,
there is an online overview of the program and the overview of how you proceed to sign up and
receive a certification.
The Tourism Ambassador Institute site offers multiple ambassador programs in the
country, with Lexington being among one of the cities. The procedure is as follows: Register and
pay the fee of $25, read course materials, attend a half day CTA training session, and pass an
open book exam at the end of class. What is not clearly mentioned is that along with the $25
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enrollment fee, there is an annual fee to keep your certification valid, which is a range from $20-
$50 a year. There wasn’t a clear cut amount on the website for Lexington when it was searched
for. This option seems that it might be a little ‘easier’ for the Bureau, being that all the
maintenance of the program is through the Tourism Ambassador Institute, but not convenient for
the participants of the program. The down side to this program is the fact it doesn’t seem like a
personal approach along with the reoccurring cost of maintaining the certification. In addition,
the participant also may have to request off of work to attend the half a day CTA session that is
required to receive the certification.
Both Charlotte and Lexington have a good approach at an ambassador program to inform
and teach citizens of their cities about the area in order to help tourists along with visitors.
Looking over these analyses, it is clear that the Northern Kentucky Convention and Visitor’s
Bureau can create a program that is based off of both cities current programs. To have the
competitive advantage, though, NKYCVB will have a couple of great opportunities to tweak
their program to not only be different than Charlotte and Lexington but become a city that the
current and even future competitors will want to align with.
Based on this information, NKYCVB will be compared to both Charlotte and Lexington
on six different measures (see below) in order to see where NKYCVB can improve at and where
they currently excel at in the market.
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Strategic Group Analysis
See Above Graph: Along the X Axis, The Northern Kentucky Convention and Visitor’s Bureau
now promotes that they are available 24 hours a day, 7 days a week. Their competitors, both
Lexington and Charlotte are available for a specific amount of hours per week. Charlotte is
available 52.5 hours per week to visitors and tourists of this North Carolina region. Likewise,
Lexington is available 54.5 hours per week to their visitors and tourists of this Kentucky region.
All three of these Bureaus also spread a certain amount of counties in their areas. Along the Y
Axis, The Northern Kentucky Convention and Visitor’s Bureau covers 3 counties, although
Cincinnati can account for this area in some cases. With Charlotte, this region spans over a 16
county area, while Lexington spans over a 15 county area. All of this information leads us to the
above graph and data points.
Sources: http://www.northernkentuckycvb.com/ ; http://www.charlottesgotalot.com/;
http://www.visitlex.com/
Northern
Kentucky
Charlotte, NC
Lexington, KY
0
2
4
6
8
10
12
14
16
18
20
0 20 40 60 80 100 120
Cou
nty
Sp
read
for
Con
ven
tion
an
d
Vis
itor'
s B
ure
au
Percentage of Time Available to Communicate to Visitor's
Percentage of Time Available to Communicate vs.
County Spread of Bureau
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See Above Graph: Along the X Axis, The Northern Kentucky Convention and Visitor’s Bureau
area currently has a hotel tax of 11. 8%. The Charlotte Convention and Visitor’s Bureau area, on
the other hand, has a hotel tax of 16.25%. Lastly, the Lexington Convention and Visitor’s Bureau
area has a hotel tax of 13.4%. Along the Y Axis is the amount of space that is available in the
Convention Centers that are near the three Bureaus. For the Northern Kentucky Convention and
Visitor’s Bureau, 110,000 sq. ft. of space is available at their convention center. In Charlotte,
there is 90,000 sq. ft. of space that is available for use in the area. Lastly, the Lexington
Convention and Visitor’s Bureau has 106,000 sq. ft. of available space available at their
convention center for reserving.
Sources: http://www.northernkentuckycvb.com/ ; http://www.charlottesgotalot.com/ ;
http://www.visitlex.com/
Northern
Kentucky
Charlotte, NC
Lexington, KY
0
20000
40000
60000
80000
100000
120000
140000
0 5 10 15 20
Sp
ace
Av
ail
ab
le a
t L
oca
l C
on
ven
tio
n
Cen
ter
Hotel Tax
Hotel Tax vs. Space Available at Local Convention Center
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See Above Graph: Along the X Axis, the number of employees from each Bureau is shown. The
Northern Kentucky Convention and Visitor’s Bureau currently has 15 employees serving for the
organization. As for Charlotte, the Convention and Visitor’s Bureau has 14 current employees
working for the organization. And lastly, the Lexington Convention and Visitor’s Bureau has 10
employees along with 7 sales and convention services staff members. Now, along the Y Axis are
the minutes from the airport to the downtown area where the convention center and/or hotels are
where the tourists and visitors will stay. For the Northern Kentucky Convention and Visitor’s
Bureau, the downtown area is a short 15 minutes from the Cincinnati Airport. In Charlotte, the
distance between the airport and the downtown area is 20 minutes. And lastly, the Lexington
Convention and Visitor’s Bureau posted a 10 minute trip from the area’s closest airport to the
downtown Lexington area.
Sources: http://www.northernkentuckycvb.com/ ; http://www.charlottesgotalot.com/ ;
http://www.visitlex.com/
Northern
Kentucky
Charlotte, NC
Lexington, KY
0
5
10
15
20
25
0 5 10 15 20
Min
ute
s fr
om
Air
port
Number of Employees at Convention and Visitor's Bureau
Distance from Airport vs. Number of Employees
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Internal Analysis
Resource and Capability Analysis
The Northern Kentucky Convention and Visitors Bureau have a number of valuable
resources available at their disposal. First, NKYCVB has a strong, in-depth website that
potential customers can easily access. The website provides large amounts of information for
tourists on deciding which possible venue suits them best. As well, it offers an entire list of
different resources these clients would need when planning their event. The list features local
websites and phone numbers of different places and services-anywhere from booking airline
reservations to finding speakers for their event. NKYCVB’s website is a vital resource for the
company.
Second, NKYCVB has access to over 65 brand name hotels including The Marriott,
Comfort Inn, Hilton, The Radisson, Holiday Inn, and Drawbridge Inn. These hotels combined
can offer more than 7,000 rooms. The brands of all these major hotel chains assist the
convention and visitors bureau in providing exceptional services to all their customers, as well as
being a valuable resource to NKYCVB.
In addition, NKYCVB has access to different types of meeting spaces. Every meeting or
convention requires a variety of needs and accommodations. The NKYCVB is able to offer the
METs Center for Corporate Learning, Northern Kentucky Convention Center, and the Bank of
Kentucky Center to possible clients. For example, if a company needed access to high-tech
technology, the METs Center would be a reasonable choice. If they were planning a rather large
conference, the Northern Kentucky Convention Center would be the one of use. These diverse
meeting spaces are all needed resources for NKYCVB.
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Third, NKYCVB’s network of top-notch sales, marketing, and management team is also
a resource to the company. These 25 full time employees help in e-marketing by promoting the
meetings and conventions through e-mails, graphics, and digital images. Moreover, they offer
pre-event promotion by providing visitors’ information on the Northern Kentucky/Cincinnati
area to attendees. They realize how important it is to generate excitement and buzz about an
event in order to increase attendance and meet clients’ needs. They are an exceptionally eager
team ready to help.
Last, but not least, the convention center’s implementation of the ambassador program,
web-based teaching module will be a particularly valuable asset for NKYCVB. This module
will teach and emphasize the value of tourism in Northern Kentucky. Any employee (of local
hotels, restaurants, attractions, etc.) that comes in contact with a tourist would take this test in
order to guide visitors in the right direction and to become more educated on the NKY area.
All of these resources are necessary in order for NKYCVB to continue operating efficiently and
effectively. They just have to continue leveraging them to stay ahead of their competition.
Core Competencies and Sustainability of Core Competencies
One significant core competency of Northern Kentucky Convention and Visitors Bureau
is their commitment to technology. They are well-known for keeping up with the evolving
technology of today. To remain competitive and prepared for what is up and coming with
technology, they make sure to do their absolute best to stay ahead. This strategy assists them in
improving and adjusting efficiencies and in projecting the brand they desire. In addition, it helps
to convey and market their image and obtain what they want and need to be a successful
company.
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From a sustainability standpoint, NKYCVB commitment to technology can one day be
forsaken, unless they work hard to remain proficient. Continuously, they have to be willing to
spend large amounts of money when needed to keep up with the developing technology.
A second vital core competency for NKYCVB is that they frequently aim for the highest quality
standards in everything that they do. This means that whoever they hire, the marketing they
deliver, the aggressive sales strategies they obtain, and the high quality customer service
projections they yield will be elite. NKYCVB has effectively been able to accomplish this
throughout the years.
Along with their commitment to their previous competency, aiming for the highest
quality standards may also be difficult to sustain. NKYCVB must spend a vast amount of time
in searching for the best candidates in order to create the best marketing strategies and have the
best team. In order to reach the customer service scores they desire, it’s important that they are
patient and to make sure that their employees are trained appropriately for the job.
A final crucial core competency for the Northern Kentucky Convention and Visitors Bureau is
that their high-class services differentiate and distinguish them from their competitors. This
includes being able to maintain excellent customer service satisfaction scores and ratings and
influencing travelers to come back to the Northern Kentucky region. For example, NKYCVB
has held a 98.7% excellent customer rating and a 97.2% rating on “intent to return.” These are
the highest customer service scores in the area. Thus, because of their success and confidence in
their customer service, they are able to offer a 100% satisfaction guarantee. Additionally,
NKYCVB provides planning and meeting assistance 24 hours a day, seven days a week. They
realize that productive and beneficial conventions are not just planned on a 9-5 basis. Customer
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service is by far NKYCVB’s primary competency. Therefore, this must remain sustained in
order for NKYCVB to keep their competitive edge.
Value Chain and Outsourcing Analysis
Northern Kentucky Convention and Visitors Bureau’s value chain is very successful,
comprehensive, and straight-forward. Their main output is actually persuading visitors to come
to Northern Kentucky and successfully booking a conference or meeting with them. It all starts
with a sales manager. It is their job to begin the activity of networking and finding possible
clients for NKYCVB. In addition, since NKYCVB is so customer-focused, every step in the
value chain revolves around providing the best customer service imaginable.
Since NKYCVB already has a top-notch sales team, excellent customer service sores, and
a good reputation in place, outsourcing would be risky for them. The business is better off
keeping control over their activities since it is so customer service oriented. Outsourcing certain
parts of the company may put them in harm’s way and may also have a negative impact on their
value chain.
Sales Manager Networking Negotiations Creating Proposal
Visit Northern Kentucky and
Book Conference
NKYCVB’s Support Activities: CUSTOMER SERVICE, sales, interpersonal skills, review
and renegotiations of contracts, site visits, decision-making, contracting, following up with
clients, tourism, research and development, information technology
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Financial Ratio Analysis
The Northern Kentucky Convention and Visitors Bureau obtain the majority of their
commission from sales: booking meetings and conventions, along with sponsorships and
partnerships they have with local hotels and restaurants. In the past two years, tourism has
increased dramatically for the state of Kentucky. From 2010 to 2011, there was a $9 million
dollar increase just in the amount of money spent on lodging. This accounted for more than 50%
of visitor spending. In addition, this also displays just how much money the tourism industry can
make and how vitally important it is to bring tourists to the Northern Kentucky region. Other
economic impacts from tourism included restaurants, shopping, entertainment, and local
transportation.
As the chart displays above, throughout the past few years, NKYCVB has been
successful with the tourism industry. If they continue to do their job efficiently and effectively,
revenue will only continue to increase yearly. It is acknowledged that NKYCVB knows how to
http://www.northernkentuckycvb.com/annual-report/
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bring visitors to the area and knows how to satisfy their needs; hence their 98.7% customer
service score and 97.2% score on intent to return.
Balanced Scorecard Analysis
Currently the bureau does not have a balanced scorecard concerning their company. A
balanced scorecard is simply a way to measure performance more than just through financial
measures. It shows where a company should be headed and is used to make better, more
informed decisions. Additionally, there are four main categories or business perspectives that
need to be taken into consideration with this particular analysis: customer strategy, learning and
growth strategy, internal business strategy, and financial strategy. All of these measures have to
be effectively analyzed and improved frequently in order for the bureau to prosper. Below are
scorecard proposals for NKYCVB:
Customer Strategies
Goal #1: Attract Businesses and Participants for the Program
Measures: Offer incentives and bring awareness
Target: 10% of each company’s employees
Initiative: Utilize current network
Goal #2: Maintain Customer Service Satisfaction Rates and Intent to Return Rates
Measures: MP’s measures
Target: 98.7% customer service satisfaction rate and 97.2% intent to return rate
Initiative: Continue performing above and beyond industry standards
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Learning and Growth Strategies
Goal #1: Maximize Use of the Web/Information Technology
Measures: Number of followers and likes on social media sites
Target: 10% increase in measures after 3 months
Initiative: start using sites to market program and get name out
Goal #2: Increase Workforce Knowledge and Skills
Measures: Number of people taking the test and reaching the next level and through
seminar
Target: In next 6 months, have at least 10% of each business’ employees participating
Initiative: Create partnership with local mobile application, seminar
Internal Business Strategy
Goal #1: Create Marketing Strategy for Roll Out of New Program
Measures: Effectiveness of the strategy, how many people are actually taking the test
Target: Immediate word of mouth
Initiatives: Post to social media sites, attend promotions/festivals, hire interns
Financial Business Strategy
Goal #1: Minimize Cost
Measure: Monitor budget and costs
Target: Minimal costs with program
Initiatives: Use technology and social media to advantage, make use of free resources
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Competitive Strength Assessment
The competitive strength assessment is a table that is put together to help show where a
business or company falls when looking at multiple key factors that are used to measure success
in the industry. Along with the company, a handful of rivals are also being analyzed with the
same key factors. In this case, NKYCVB is the main company at hand. Their competitors that we
will be comparing the key factors to are the Lexington Convention and Visitors Bureau along
with the Charlotte Convention and Visitors Bureau.
The competitive strength assessment can be composed of two tables: an un-weighted and
a weighted. In this analysis, both tables are below to show how even though they are the same;
there is a difference between the two. The first table (Un-Weighted) is shown below:
NKYCVB Lexington CVB Charlotte CVB
Key Measures
Space Availability 10 9 7
Customer Service 10 9 7
Travel Options 7 8 10
People in Convention Center 7 10 6
Major Attractions 9 10 7
Number of Employees 10 7 9
Adaption to Technology* 6/8 7 4
Hotel Tax 10 8 6
Marketing (of Program)* 0/7 6 3
Un-Weighted Overall Strength Score 69/78 74 59
Strength Rating (1 = Very Weak; 10 = Very Strong)
As you can see from the graph above, there are 9 key factors that we used to measure
NKYCVB along with Lexington CVB and Charlotte CVB. The three bureaus’ get rated on a 1-
10 point scale on where they stand currently in each key measure. To score a 1, means that that
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measure is very weak with that bureau, while scoring a 10 is when a bureau has the maximum
advantage in that factor. No bureau can get the same number for each measure. After analyzing
each bureau in each measure, the above data was determined.
The second graph is very similar in the aspect of the key factors and scoring, but another
calculation is incorporated and creates the weighted competitive strength assessment. This
weighted data is listed below:
Importance
Weight
Strength
RatingScore
Strength
RatingScore
Strength
RatingScore
Key Measures
Space Availability 0.20 10 2 9 1.8 7 1.4
Customer Service 0.15 10 1.5 8 1.2 7 1.05
Travel Options 0.15 7 1.05 8 1.2 10 1.5
Seats in Convention Center 0.15 9 1.35 10 1.5 8 1.2
Major Attractions 0.10 9 0.9 10 1 7 0.7
Adaption to Technology* 0.10 6/8 0.6/0.8 7 0.7 4 0.4
Hotel Tax 0.05 10 0.5 8 0.4 6 0.3
Number of Employees 0.05 10 0.5 7 0.35 9 0.45
Marketing (of Program)* 0.05 0/7 0/0.35 6 0.3 3 0.15
Weighted Overall Strength Score 1 69/78 8.40/8.95 73 8.45 61 7.15
Strength Rating (1 = Very Weak; 10 = Very Strong)
NKYCVB Lexington CVB Charlotte CVB
Where this graph differs from the previous is that importance weights are established and
placed with the previous score to create a ‘weighted’ competitive strength assessment. The more
important key measures have higher weights along with the lesser factors have a lower
importance weight. Once the weight was determined, it was then multiplied by the score from
the first graph and the total is displayed in yellow out of a total score of 9 (since there are 9
factors and the total importance weights have to equal 1 or 100%).
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The order and decision of what factor was more important was a choice that our group made
and will explain in the following:
1. Space Availability – When a group of people are joining together for a gathering,
whether it be a meeting or a party of some sort, the first thing they look at when visiting
venues is space. Will it fit the amount of people attending? Will there be enough room?
Will participants be crowded? These are all questions that the host will want immediate
answers to. As a group, we felt that this was the most important key measure to both the
bureaus and the host trying to find a venue. Due to this importance we weighted this
measure with a 0.20 weight.
With the scoring, we had NKYCVB with the highest, a 10, due to them having the
largest amount of space with the NKY Convention Center, at 110,000 square feet.
Lexington is very close with 109,000 square feet. which is why they received a close 9 on
the assessment table. Charlotte was scored a 7 due to their much smaller amount of space
in their facilities, with 90,000 square feet. Although that space is large, Lexington and
Northern Kentucky are just a few steps ahead with square footage, which set them both
apart from Charlotte.
2. Customer Service – Once the visiting company or group picks a venue, customer service
is very important, especially when the visiting group isn’t familiar with the area. The
amount of access the company can have with the bureau to help keep track of how plans
are coming or additional needs that need to be met is crucial. This was the reason for
ranking this measure second among the nine. With this being second, an importance
weight of 0.15 was given.
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With the scoring, NKYCVB clearly deserved a 10, due to their 24 hour customer
service that they provide to all of their guests and clients. Lexington was scored an 8,
due to ‘normal’ hours available to be contact, along with a few hours over the weekend
to be open to clients. Charlotte was very similar to Lexington, but had fewer hours
available to the public on the weekends, so a score of 7 was given to their bureau.
3. Travel Options – When having a gathering in a big city, transportation is key when time
is available for the parties to see around the area. With that reason, we ranked this
measure as third and gave an importance weight of 0.15.
With the scoring, Charlotte was given a 10 due to their broad range of
transportation. From their light rail system that is run daily to their bus transportation,
Charlotte offers a lot to its visitors in terms of transportation. With Northern Kentucky
and Lexington, both offer a great bus transportation. With this in mind Lexington
received a score of 8, while Northern Kentucky received a score of 7. This small
difference was due to the price of fares. With a 50 cent difference, Lexington pushed
through to receive the 8.
4. Seats in Convention Center – This measure coincides with space available. This is from
the aspect of how many people each convention center is able to hold comfortably.
Because this is a more important measure, we ranked it forth and gave an importance
weight of 0.15
With the scoring, Lexington was given a 10. Knowing that both Lexington and
Northern Kentucky are very close in size, Lexington states that they are able to seat 4,500
people. The down side is that there is more ‘hype’ about Rupp Arena than the convention
center, so the 23,000 seat arena is more talked about. Right behind Lexington, with a
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score of 9 is Northern Kentucky. The Northern Kentucky Convention Center can seat up
to 3,900 people and does a great job stating exactly what the area can hold with other
topics such as exhibitors and conferences. With a score of 8, Charlotte states that their
convention center holds 3,500 at once. Although there is a large amount, both Lexington
and Northern Kentucky is larger.
5. Major Attractions – When a client comes into town, or uses a venue for meeting or
gathering purposes, major attractions in the area is an important factor. When down time
is available, these attractions are what visitors like to attend or see. For this reason, this
measure was ranked fifth and given an importance weight of 0.10.
With the scoring, Lexington was given a 10, due to their recent success in NCAA
basketball, along with attractions such as the University of Kentucky, Rupp Arena, Horse
Farms and Parks and others that attract a variety of guests. With a score of 9, Northern
Kentucky has similar attractions that help promote themselves. Being close to Cincinnati,
NKYCVB is able to market that side of the river along with places such as Newport on
the Levee and the Purple People Bridge. Finally, Charlotte was given a score of 8. Their
attractions seem to revolve around a niche group of individuals, such as the NASCAR
Hall of Fame and the large number of art centers.
6. Adaption to Technology – Technology is the fastest and most up to date form of
communication. It is something that bureaus need to adapt, because it will only be getting
more advanced with time. The faster bureaus are able to adopt to better inform clients and
visitors, the better they will be as a bureau and the more visitors will appreciate them for
their adaption ability. This is why this measure was ranked sixth and given an importance
weight of 0.10.
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With a score of 7, Lexington has a few advantages such as their regular updates to
social media along with an app for visitors when visiting the area. With a score of 6,
NKCVB is lacking in the social media world and has no app for visitors at the moment.
We believe with our ideas, that this number could surpass Lexington if they are
implemented. Finally, with a score of 4, Charlotte lacks in both social media and app
availability.
7. Hotel Tax – Hotel tax is important because the less money that the visitor or client has to
pay, the happier they are and in turn, the happier the bureau is. For this reason, this
measure was ranked seventh and given an importance weight of 0.05.
With scoring, NKYCVB received a score of 10 with their hotel tax at 11.8%.
Lexington CVB received a score of 8 due to the 1.6% jump to 13.4% hotel tax. Finally,
with a staggering 16.25% hotel tax, Charlotte received a score of 6, putting them in third.
8. Number of Employees – This measure is a factor that is important more to the bureau
itself than the visitor, although it does benefit them when wanting to get contacted with a
representative. Employees help run a business, or bureau in this case. For that reason, this
measure was ranked eighth and given an importance weight of 0.05.
With scoring, again, NKYCVB received a 10 due to its current 15 employee staff.
Right behind them, with a score of 9, Charlotte currently has 14 employees on at their
bureau. Finally, with a score of 7, Lexington currently has a staff of 10 employees,
although, in addition, they have a 7 employee staff outside of the bureau that helps with
sales of the convention center.
9. Marketing (of the Program) – This measure seemed to be a measure in the sense that
when the ambassador program is live, that this will be a great key factor with clients.
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Having knowledgeable citizens and locals help guests find things that might not be
noticed with a pamphlet given when arrived. For that reason this measure was ranked
ninth and given an importance weight of 0.05.
With scoring, Lexington received a score of 6. Their current marketing of the
program is well known to the visitor, but is stated in information given, but not standing
out to the eye. There could be more if the bureau put a bit more effort into marketing.
With a score of 3, Charlotte has very low marketing of their program. After receiving an
email that they only marketing was through friends, it is clear that the Charlotte bureau
could do much more to promote and market the program. With NKYCVB implementing
this program, we feel that this is the bureaus time to shine, in this measure. With the help
of our strategies explained later, there is very much potential for a great marketing plan to
arise.
This overview hopefully helps you understand the competitive assessment table more and
gives a better comprehension of the strengths and weaknesses of the Northern Kentucky
Convention and Visitors Bureau stands among its competitors Lexington Convention and
Visitors Bureau and Charlotte Convention and Visitors Bureau.
Business (and Corporate Level) Strategies Assessment
The Northern Kentucky Convention and Visitors Bureau currently have a board of
directors, also known as the Commission. The Northern Kentucky Convention and Visitors
Commission was formed by an interaction of the Northern Kentucky Chamber of Commerce,
Northern Kentucky Hotel/Motel Association, and the Northern Kentucky Restaurant
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Association, as a result of enabling legislation passed by the General Assembly of Kentucky at
their 1974 session. The Commission was authorized by official actions of the Fiscal Courts of
Boone, Campbell and Kenton Counties, Kentucky. The Commission current has 18 members,
who vary in the hospitality industry. Membership is composed of 6 members from each County
comprising the Commission appointed by the County Judge/Executive (Objectives, Policies and
Procedures of the NKYCV Commission 1).
The Northern Kentucky Convention and Visitors Commissions mission statement is as
follows:
“To promote the economic growth of Northern Kentucky through the expenditure of the
Transient Room Tax to attract conventions, meetings and visitors to the area by acting as an
aggressive sales, marketing and service organization..” (Objectives, Policies and Procedures of
the NKYCV Commission 1)
Along with their mission statement, the NKYCV Commission objectives are as follows:
1. To increase business to every establishment that directly or indirectly serves the
conventioneer and/or the traveling public through active sales, marketing and service
programs.
2. To encourage those serving the traveling public to always render a high standard of
performance; and to levy charges proportionate to the quality and quantity of service
and/or products supplied.
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3. To extend the hand of welcome to all visitors, and visitor prospects, in keeping with the
highest traditions of hospitality expected of our area; and in keeping with fair and honest
business practice.
4. To lend consultation, advice and encouragement to the development of programs and
projects that will enhance the general appeal of the area to tourists.
5. To maintain the Transient Room Tax for the sole purpose of promoting convention and
tourist activity to the area and not for the support, administration or operation of special
interest group projects, programs or facilities.
The Northern Kentucky Convention and Visitors Commission is currently filled, buy when
vacancies occur, they are filled based on appointment. The positions stated in the previous table
consist of various people in the hospitality industry around the 3 county (Boone, Campbell, and
Kenton) span.
There are four committees that the commission offers members to participate: Executive
Committee, Marketing Committee, Budget Review Committee and Compensation Committee.
Many of the members are a part of at least of the committees listed and help with future
community decisions along with the NKYCVB.
Extent and Type of Firm’s International Strategy
The Northern Kentucky Convention and Visitors Bureau currently has a third party, the
Regional Tourism Network, promote their international travel. Although leisure travel is the term
used synonymously with international travel, the bureau is linked with the Greater Cincinnati
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Convention and Visitors Bureau as well as various community partners to collaborate with the
Regional Tourism Network to market the region.
According to the Regional Tourism Network’s website, www.cincinnatiusa.com, they are
a destination marketing company that promotes leisure travel to drive overnight visitation to
regional hotels, attractions and entertainment experiences in Cincinnati and Northern Kentucky.
Founded in 2005, the RTN attracts new leisure visitors and dollars to the region while
consistently building a loyal base of repeat visitors.
The Regional Tourism Network helps showcase attractions, hotels, and dining options
among other unique places to visit while staying in the region. With the website come
advantages and disadvantages with consideration to the Northern Kentucky Convention and
Visitors Bureau. An advantage is that this option exists. The fact that the bureau can be promoted
international is a huge benefit to the both the city and the bureau and can help increase visitors
by reaching the maximum areas around the world. The risk or disadvantage of this network is
that both Cincinnati and Northern Kentucky’s Convention and Visitors Bureau is merged and
promoted on the same platform. Although these cities don’t consider themselves competition,
Cincinnati will outshine Northern Kentucky as of right now in time. People outside the country
will be more aware of Cincinnati rather than Northern Kentucky and decide to work with
Cincinnati due to being more aware of the city more than Northern Kentucky. An advantage to
this merge though, is the fact that this puts Northern Kentucky ‘on the map’ and makes
foreigners aware that the area exists and is a place that could be visited along with Cincinnati.
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Composition of Board Members
The Northern Kentucky Convention and Visitors Commission, like previously stated, is
composed of 18 people from within the hospitality industry in the Northern Kentucky area. The
current members, with titles, organizations associated with, county from and company related to
is listed below:
Northern Kentucky Convention & Visitors Bureau Board of Commissioners
Prefix First Name Last Name Title Organization County Company
Mr. John Ellison Chair Restaurant
Association Campbell
Hofbrauhaus
Newport
Mr. Michael Conway Vice-Chair Hotel-Motel
Association Kenton
Winegardner &
Hammons, Inc.
Mr. Alan Bernstein Treasurer Hotel-Motel
Association Campbell BB Riverboats
Mr. Gordon L. Snyder Past Chair Restaurant
Association Kenton
Commonwealth
Hotels, Inc.
Mr. Nicholas Ellison
Hotel-Motel
Association Campbell
Hofbrauhaus
Newport
Mr. Daniel T. Fay
Hotel-Motel
Association Boone
Commonwealth
Hotels, Inc.
Mr. Tim Bray
Fiscal Court
Appointment Kenton
Kentucky
Speedway
Mr. William I. Donnermeyer
Fiscal Court
Appointment Campbell
Rep. Joseph Fischer
Legislative
Appointment Campbell
Mr. Jack Gordon
Chamber of
Commerce Boone Turfway Park
Rep. Adam Koenig
Legislative
Appointment Kenton
Mr. Lee Palaschak
Hotel-Motel
Association Kenton
Ambridge
Hospitality
Mr. Charlie Pangburn
Chamber of
Commerce Kenton UC Health
Mr. Subhas Patel
Hotel-Motel
Association Boone
Keystone Hotel
Group
Mr. Eric Rose
Chamber of
Commerce Campbell Newport Aquarium
Mr. Sal Santoro
Fiscal Court
Appointment Boone
House of
Representatives
Mr. David Smith
Restaurant
Association Boone
Cincinnati Airport
Marriott
Rep. Addia Wuchner
Legislative
Appointment Boone
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Having this many members currently on the commission shows that this board is very
determined and motivated to help improve the Northern Kentucky area as much as they can in
the hospitality industry in order to help attract the area to current and future visitors. The variety
of the members is very useful when making decisions for the area and every aspect of each area.
In addition, there are members from all three counties represented by the NKYCVB, so everyone
is incorporated and knowledgeable about what is going on with the bureau and in the area.
The Northern Kentucky Convention and Visitors Commission is comprised of a great
number of members who range with knowledge that will only benefit the Northern Kentucky
area along with the bureau.
Structure of the Firm
The Northern Kentucky Convention and Visitors Bureau is structured as a quasi-
governmental business. This means that it is treated by national laws and regulations to be under
the guidance of the government, but also separate and autonomous from the government. These
organizations are often partially or majority funded by the government. They are usually
considered highly important to smooth running of society, and are sometimes propped up with
cash infusions in times of crisis to help surmount situations that would bankrupt a normal
privately owned business (merriam-webster.com).
With this structure and the help of the Northern Kentucky Convention and Visitors
Commission, all appropriate strategic and financial controls are in place. With our proposed
strategies to follow, controls are in place to keep costs down, due to the low money available to
the bureau to help promote and award participants in the program. Creative strategies are also in
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place to help bring awareness to the ambassador program and to convince locals that it is worth
participating. With the following issues being addressed, this quasi-governmental business will
have plenty of reachable recommendations to get maintain appropriate strategic and financial
controls in the bureau.
Issue Identification
There are four issues that have been identified by the NKYCVB that we creat strategies
to help with solutions. There are as follows:
The first issue facing the bureau is the lack of marketing for the ambassador program.
They currently have no marketing plan for the roll out of their ambassador program to the
community. One of the main reasons for this is their lack of social media expertise and usage.
They are currently struggling immensely with their online capabilities. Consequently, since
NKYCVB has no marketing strategy in place at this time, this puts their whole program at risk
and the successfulness of it.
Second, the bureau has no incentives for the new ambassador program. They currently
do not recognize a way to get employees and employers involved in the program and keeping
them engaged. As a result, this also puts the effectiveness and successfulness of the program in
danger. The individuals taking the test need motivation to complete the increasing tiers of the
programs. For these reasons, the bureau needs to have enticing incentives.
Another huge issue that they have at hand is that NKYCVB needs assistance in designing
and implementing the test questions and answers. They currently have no test questions created.
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The company would like to produce three levels of testing for the program and currently there
are none.
Finally, we believe the idea of partnering with a local company can be raised. This is
seen as not necessarily an issue, but as an excellent opportunity for the bureau as well as the
other organization.
Our group has created four strategies to help solve these problems and they will be
discussed as our next topic.
Proposed Strategies and Implementation Schedule
Incentives
One of NKYCVB’s challenges for the destination education program is keeping the
“students” engaged and interested in becoming an ambassador of NKY. We are proposing that
NKYCVB utilize incentive marketing and offer incentives to both the participants and local
businesses. NKYCVB’s target market is anyone that comes in contact with visitors and a large
percentage of these individuals come from hotels, attractions, restaurants, etc. We believe
NKYCVB would benefit by contacting owners/managers of these local businesses and informing
them of the advantages not only their business would be receiving but their direct employees as
well.
One way to attract both the employees and employers to participate with this program is
to give them incentives. NKYCVB will offer the students or employees discounts/coupons from
the local participating businesses. We propose after completion of the first and second levels of
testing, the student will be directed to the area on the website to print off their sheet of coupons.
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Since NKYCVB can’t create local businesses’ coupons, NKYCVB can propose to the businesses
to participate in this program with the only cost of an available coupon or discount. There will
be a 3”x4” space available for each coupon a business has to offer.
Along with the business’ participation, NKYCVB can guarantee them that their business
will be listed on the Official NKYCVB Vendor Referral Brochure. However, to generate more
participates; NKYCVB can place a certain percentage of businesses’ employees that would be
required to take the test in order for the business to be in the referral brochure. We are proposing
that each business have at least 10% of their employees complete all three levels of testing.
This proposal should entice the businesses to participate for multiple reasons. Not only are they
assisting in educating individuals of the tourism community, but they are also advertising their
business through the coupon availability. Additionally, these businesses will be promoted by the
NKYCVB on their referral brochure, which will be especially beneficial during major events that
come to the Northern Kentucky area. Lastly, the biggest benefit these businesses will receive is
being NKYB Accredited.
NKYCVB’s mission statement demonstrates their responsibility of positively impacting
the NKY economy through marketing and informative organization focusing on tourism. The
NKYCVB has demonstrated to local businesses and visitors that they are a credible source of
tourism, most knowledgeable, and competent in displaying the most excellent customer service.
This level of credibility should be recognized by offering the tourism community the chance to
be NKYB Accredited. One way for businesses and individuals to become NKYB Accredited is
by completing this program. This program is an entry strategy for NKYCVB in elevating their
tourism image.
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There will be a couple different ways to display this type of accreditation. Upon
completion of all three levels of testing, the student will receive a lapel pin to wear with pride.
The businesses will also receive various stamps of approval that include window stickers and
lapel pins if they are able to have at least 50% of their employees participate in the program.
NKYCVB can obtain the lapel pins through the website www.allaboutpins.com. We found that
this vendor has relatively the same pricing as other vendors but they offer free assistance in art
design for the NKY Accredited image and free shipping. We feel that an appropriate size of the
pins would be 1.50” and the ideal purchase count should be 500 pins for the first order. The
estimate purchase for the pins will be between $700 and $800. The window decals for the
businesses can be purchase through a vendor like Vistaprint, www.vistaprint.com. Vistaprint
offers a small size with the dimensions of 4.8”x4.8”. We feel this would be an appropriate size
for businesses to display in their window, preferably by the front door. Vistaprint also offers
businesses to upload their own design or use designs they have available. NKYCVB could
utilize their NKY Accredited image to be displayed on this decal as well. We are proposing that
NKYCVB purchase 100 decals at $188.00. With additional minimum costs, including logo
upload, tax, and shipping, the window decals would run NKYCVB between $200 and $300. In
total the incentives may run NKYCVB near $1,000; however the NKYCVB is creating an
accreditation image, creating awareness to tourism, and generating revenue.
Ultimately, this NKYCVB Accreditation should become an additional incentive to both
the students/employees and the businesses that are involved. This accreditation is a positive
approach into emphasizing the value of tourism to this area. Being accredited shows that all
those that have participated have taken the extra steps in becoming more aware of the
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surrounding Northern Kentucky area and how ultimately each individual has a major impact on a
visitor’s return.
Social Media
Popular social media sites such as Facebook, Twitter, and LinkedIn are becoming an
increasingly valuable tool for companies to market their products. With more than 800 million
users logging into Facebook every day, over and above 500 million Twitter consumers, and more
than 150 million professionals connected on LinkedIn, there are a vast amount of individuals
NKYCVB can easily and quickly reach out to in order to showcase their new ambassador
program (User Activity). Whether or not it is realized, social media is here to stay. It is used by
nearly everyone and is the most popular online activity. For this reason, we believe NKYCVB
needs to update and improve their social media sites and to begin making use out of the free
resources that are made available directly in front of them.
To first begin the implementation of the updated sites, NKYCVB needs to change their
Facebook name from Northern Kentucky CVB to their full name- Northern Kentucky
Convention and Visitors Bureau. We suggest this simply because when searched by their full
name in the search bar on Facebook, no results are found. If people cannot locate their page
(other than going to NKYCVB’s home webpage), they are unable to “like” their page, follow
them, and consequently, unable to read the posts by the convention center.
Marketing on NKYCVB’s Twitter site is great place to start. With nearly 660 followers
and an active tweeting capacity, NKYCVB will be able to reach more people and quickly. We
suggest they start following not only other businesses around the area but more locals. They can
do this by finding people who are tweeting about the region (i.e. #NorthernKentucky).
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NKYCVB’s LinkedIn account is nearly non-existent. With only a measly 14 followers,
no pictures, and no description of the company, NKYCVB has a tremendous amount of room for
improvement on the site.
In order to make this a successful business strategy for NKYCVB, we propose hiring
three social media interns and three marketing interns. Northern Kentucky University’s own
Entrepreneurship Institute Student Coordinator, Jeff Varrone has agreed to be a reference in
getting the word out to students. His contact information is as follows:
Email: [email protected]
Phone: (859) 572-5931
Office: Haile/US Bank College of Business Room 393
Mr. Varrone would serve as an extremely valuable person in making the opportunity
known to students and in obtaining top talent. Also, the College of Business just recently hired
an individual who will be working solely with internships for NKU College of Business students.
With both marketing and social media interns, we believe these college students will have the
freshest ideas on marketing strategies and creative ideas for improving NKYCVB’s social media
sites. Depending on NKYCVB’s budget, these do not have to be paid internships. In addition,
some qualities that we suggest you look for in these interns are: good communication abilities,
solid writing skills with the capability to get the message across in a simple yet sweet and
creative way, good work ethic, enthusiasm to learn more about the industry, and one who shows
initiate and imagination.
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Looking at social media overall, we propose that an increase of 10% of followers and/or
likes be implemented in the next 3 months. This goal seems realistic and with the help of interns
and other resources, the percentage will climb steadily throughout the next year.
Finally, we suggest NKYCVB contact hotel human resource departments around the area
to make known the importance and advantages of the ambassador program to their employees.
In addition, using the strong network of people and companies that NKYCVB currently has will
also be another way to make the program well-known to many other people.
Seminar
In order to inform and bring awareness to the community about the ambassador program,
an informational seminar should be held. This would be a one time opportunity for businesses,
employees, and locals to become knowledgeable about the program and what it offers to those
who partake in it as well as the visitors and tourists.
The seminar will be broken up into four Saturday’s, with each weekend day being a
different target audience. The first Saturday will be for business owners/managers of local hotels:
The Holiday Inn, The Marriott, etc. The second Saturday will be for business owners/managers
of local restaurants. The third weekend will be for business owners/managers of major
attractions along with the ‘things to do’ category in the area. This includes shopping, dining,
Florence Freedom, Newport Aquarium, etc. The fourth and final Saturday will be for the ‘other’
category. This includes city officials, police, fire departments, local citizens along with any other
person wanting to gain more knowledge about what the program contains.
The seminar is suggested to be held from 8am to 10am due to the job titles that these
participants have as well as the convenience. The outline of each seminar will be relatively the
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same. The reason for having separate seminars is to help target each industry to give them a more
personalized pitch and make the meeting more personable. This ambassador program will affect
each industry in a unique way, which is another reason for the separate seminars.
For each seminar, the outline or order of topics will be as follows:
1. What is the program?
2. The purpose of the program?
3. Why employees should participate?
a. To emphasize the value of tourism
4. The effects the program will have on the Northern Kentucky area
These seminars will be promoted through word of mouth through the bureau and
convention center. Along with word of mouth, establishments will be alerted by e-mail (if
available) and promotions will also run online for followers to become aware. This approach is
virtually no cost to the bureau and is valid and acceptable for an event such as this.
At the end of the series of seminars, the next step is to have the attendees go back to their
establishment and figure out an appropriate percentage of employees that would like to invest in
participating in the program once it is launched. Along with this, awareness to employees would
be appropriate to request that the establishments carry out. This program will thrive on word of
mouth, so the more people that are aware of the program, the more participants we will create.
A name for these seminars might be on your mind at the moment. With the collaboration
of our proposed program name and the event itself, these informative sessions could be entitled
NKY’s Happenin’ Seminar Series. The title of the program itself will be explained in a couple
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sections, but we believe that a great way to promote both the small seminars and the program is
to intertwine them both to create the title previously stated. So the concept is now proposed.
Partnership
Currently visitors and tourists use the help of NKYCVB as well as Google Maps and
other internet sources to get around the Northern Kentucky area. But what if there was a “one-
stop” service that could help visitors find local restaurants, attractions, events and give insight to
these topics and help assist tourists in making decisions of what places to attend while in the
area? As of 2009, there is a company, known as Text and the City, which does just that for the
Northern Kentucky area. To create more value to the bureau and help highlight the area with
programs available now, it is now proposed that the NKYCVB create a partnership with Text
and the City and help maximize tourist knowledge of the area through this mobile application.
Background and Information
Text and the City is a service that provides visitors, and locals if needed, a place to turn to
in order to find out what’s going on in the Northern Kentucky area along with great places to
dine and shop. In addition, this service is free to anyone and everyone who visits the site or
obtains the mobile application. This resource is the “Yellow Pages” of Northern Kentucky. Text
and the City’s model is to build community through mobile and they currently are doing so.
When entering the site, a state, region, and community is asked to be selected. Right now the
focus is on the Northern Kentucky area. Within each region, there are approximately 15-20
communities. Once your location is set, your home screen will appear and the use is able to
begin their search. Anything from restaurants and events, to baby stores and shopping areas can
be searched and selected through Text and the City. If you need to find a pizza place in the
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Newport area, all you have to do is go onto Text and the City, choose the area interested in, the
category (Restaurants), the sub category (Pizza), and you will have a selection of local pizza
places such as Jet Pizza as well as the more popular places such as Papa John’s. Once a
restaurant, in this instance, is selected, an informational screen will appear featuring a description
of the establishment, hours of operations, a coupon if available, their menu, a price point, and
social media information. Due to how new the company is to the market, the site is under
construction and currently being designed by NKU students and is scheduled to launch by
January of 2013. There are so many options that Text and the City offers to visitors and will
offer to the bureau. They are just focused on promoting the area in a unique way that is different
from other similar services.
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Another unique feature that Text and the City provides is a option to ‘opt in’, using a
phone number, and receive alerts via text message about upcoming events, weather alerts, and
other important information that visitors or users would need to know being in the Northern
Kentucky area. Ideally, a visitor would opt in when arriving to the area, receive information, and
then opt out when the visit is over. The process to opt in and out is very simple and easy and no
‘heckling’ is involved between Text and the City and the user. With events, these automatic text
messages will be sent out approximately 24 hours before the event begins or takes place. In
addition to events, weather alerts are sent out as well. These are severe weather alerts that inform
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subscribers of the necessary precautions to take. In addition to the weather alerts, a text can also
be sent out in the case of immediate danger. When tested in Cleveland, a shooting took place and
within second Text and the City sent out a text stating what was going on and to not be alarmed
but to dismiss if in the same area. These text messages are sent between business hours, with the
exception of immediate notifications based on weather or emergencies. This feature is such a
great asset to any user because of the unlimited information that can be provided through this
subscription option. Although over texting can lose the user, but informative information can
help with users who aren’t aware of where they are and what to attend. Text and the City can
mold this option to what the bureau suggests as well. Eventually, when opting in, the user will
not only enter their phone number, but also select their target age so more events and information
that is geared toward their age is sent to them.
When it comes to advertising, Text and the City is still in the process of getting all the
details in line. Currently, there is no advertising but in the future there is hope of some.
Advertising will be a bit different in the sense that advertisements on each page will pertain to
items on the page selected. For example, if the user chooses to go into restaurants and search
pizza parlors, there will be advertisements for Dewey’s or Domino’s or maybe even Jet Pizza on
the same page. In the same sense, under the burger subcategory to restaurants, an advertisement
for Five Guys or Mad Mike’s might appear. All the advertisements are to only relate to the
current search the user is seeking out.
Text and the City would emphasize not only NKYCVB but also Northern Kentucky if a
partnership is formed. This program could bounce off of the ambassador program being created
as a fall back for visitors when a local or student of the program isn’t present.
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Benefits to NKYCVB
When creating partnerships, the first question that is brought up is how will I, the
business, benefit? Well there are a few benefits to NKYCVB partnering with Text and the City.
The first is that the service is free. Text and the City is both free to users as well as with the
bureau. For that reason, Shawn Blaine, is more than happy to get insight on the NKYCVB’s
impression of the application. After speaking with Blaine, she stated that she would allow
NKYCVB to advertise on the application for no charge and would place advertisements to both
the events page as well as the government page. This is ultimately free advertising for partnering
up with Text and the City. The second benefit to this partnership is the expansion of area
awareness. When it comes to Millennials, target group aged 29 and younger, we are hesitant to
confront strangers about obtaining information. This application will be able to help with
information that the Millennials are hesitate to ask for in an easy service. This is a great benefit
due to the large market that will not gain information about the Northern Kentucky area because
of not wanting to confront local strangers. A third and final benefit is the fact that Shawn stated
to me that she and Text and the City might have a few suggestions that could help generate
revenue for the NKYCVB through the ambassador program. No details were discussed, but
being knowledgeable about your industry, she was very excited about your program and wants to
help the bureau create revenue if possible, without charging participants and businesses. Text
and the City have already shown interest and desire into helping work with NKYCVB and their
ambassador program currently being created. Text and the City believe that their service will
help promote this program as well as help the bureau with struggles along the way. This
partnership is almost intertwined perfectly with one another to benefit both parties in different
ways to help each partner shine just as much as the other.
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Competition
When it comes to competition, Lexington currently has an application available called
‘Big Lex’. The functions are similar in that this application helps direct tourist and visitors
getting around the city and find things to do. The Big Lex home page seems to lack categories
when compared to Text and the City. When going into the restaurant category, for example, is
where Big Lex begins to lack more. When choosing restaurants, there is a list of all restaurants
in the Lexington area, listed in alphabetical order. When a visitor is in a city, do they look for a
restaurant by name or by category of food the restaurant is considered? The answer is the latter,
in a sense that names of businesses are insignificant when it comes to visitors not aware of the
city and what is offered. Another example for the application layout is when going into the
‘Horses’ section. Once choosing this section, you are listed with yet again another long list of
30+ places, in alphabetical order. There is no way of knowing additional information or how to
choose which establishment to visit.
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One last observation while exploring the Big Lex application was that there was no place
to select what region of Lexington you are currently in. There is, however, a function that uses
the current location of the device with the application running and brings up ‘bubbles’ to show
what is around the area you are currently in. The bad part is if you opt out of using your current
location, then you have no way of knowing what is around you and Lexington is a large area and
their CVB expands 15 counties. Current location is the only way of helping visitors find was is
nearest them, depending on what part of the ‘Bluegrass Region’ they are in.
So, although NKYCVB might be hesitate with this partnership due to Lexington already
having this application established, there is so much more potential with Text and the City due to
the layout being more attractive to the visitor rather than say the current citizen, which seems to
benefit from the Big Lex application.
Another city that has created a similar application is the Greater Cincinnati CVB.
Although this may not be considered competition, a comparison should be analyzed in order to
see how their application compares to what Text and the City can offer to the NKYCVB. The
Cincinnati CVB has created an application entitled Downtown Cincinnati. This application is
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categorized in a more modern way: Eat, Shop, Stay and Play. Unfortunately, the layout is similar
to Big Lex in the sense that when choosing each category, the results come up in alphabetical
order rather than by food category, for restaurants, as an example. We only see this is a place
where both Lexington and Cincinnati are lacking. A unique feature that Downtown Cincinnati
offers in addition to showing attractions around your current location, the map will also show
you what places are closed depending on the time. Below is an example, where the red “x’s” are
marked as the locations that are currently closed at the time of this search (6:24pm) along with
the app features:
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From looking into Lexington and Cincinnati’s current applications, you can see that there
is room to improve and the partnership with Text and the City is the perfect opportunity to do so.
Text and the City have a more personalized layout that focuses on the visitor and want they are
looking for and wanting to visit. If there are things that should be added to the Text and the City
application based on the wants and needs that the NKYCVB would like in an application, Shawn
is open to any suggestions that would improve the service.
If a partnership between Text and the City and the NKYCVB is created, the main
measurement to best use to evaluate the success of this decision is by controlling traffic of the
application/website. By tracking user traffic, NKYCVB can see how many visitors are people in
the area are using the service. To see a 10%-15% increase in weekly users in a 3 month period
would signify that the partnership is benefiting the bureau and should continue. As months
progress, the percentage should be raised due to awareness and the success of the service to
users.
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Text and the City is a partnership that can help differentiate NKYCVB from other cities
as well as align with the ambassador program and educate visitors in a mobile sense. Shawn
Blain, CEO of Text in the City, is very anxious and excited for this great opportunity to be able
to help the bureau and attract visitors to the Northern Kentucky area. Shawn is fully ready to
meet with the NKYCVB to discuss Text and the City in addition to ways that Text and the City
can help create revenue for the NKYCVB. Shawn asked that a meeting be scheduled to discuss
opportunities in more detail as soon as the NKYCVB is available. Her contact information is
listed to below as well as she having the NKYCVB contact information. This partnership is a
great immediate start to the creation of the ambassador program. From the benefits, to the
accessibility, to the convenience of having the development already completed, the partnership
really just highlights both parties involved. This is an opportunity that is highly suggested to
investigate and invest time into this prospect.
Program Name/Questions
NKY’s Happenin’
One of NKYCVB’s goals is to create an attention-grabbing name for this program. We
have come up with a name that we believe is creative and catchy. We also wanted to come up
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with a name that wasn’t like any of our competitors’ programs. To us, one question comes to
mind with tourism. “What is happening?” What is happening in the area that is being visited? It
can involve restaurants, things to do, where to go, etc. We would like to introduce the name
“NKY’s Happenin’” to the NKYCVB for this program’s name. We also feel that it has a double
meaning. We believe that it also signifies that the Northern Kentucky area is the happening
place to be! The Northern Kentucky area has so many amenities to offer visitors and it continues
to grow as an excellent location to visit.
Additionally, NKYCVB was hoping to create questions for three different levels of
testing. We have come up with a variety of questions that will hopefully open the door to more
fun and exciting questionnaires. Also, we are proposing that each level of testing has different
questions. We suggest for the first level of testing the questions are multiple choice, the second
level should consist of multiple choice and open ended questions, and lastly, the third level
should strictly only be open ended. We feel that as the testing progresses the level of difficulty
should as well. Here are some questions that we hope the NKYCVB will be able to utilize:
1. Where would you direct a visitor to shop at smaller boutiques?
2. What two shopping centers allow visitors to enjoy the outside in between stores?
3. Which clothing store is located closest to the airport?
4. Where can a visitor enjoy dinner and an evening of jazz music?
5. Which local area provides a visitor with live music and a spectacular view of the Ohio
River, Cincinnati, and the NKY cities along the river?
6. Which live music spot is known for their variety of macaroni and cheese?
7. Which Italian restaurant was in the film Rain Man?
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8. This well-known burger spot was featured on The Food Network.
9. Which restaurant can a visitor enjoy an excellent German meal, a microbrewery, and
accordions?
10. What pizza place has been serving the local communities for over 60 years?
With these questions, in addition to the others that will be added, NKY’s Happenin’ will be
on their way to providing a successful program that attracts to employers, employees, and other
local citizens that would like the chance to partake in a test that will inform them as well as ‘test’
their own knowledge about the Northern Kentucky area. These participants will then begin to see
that NKY is where it’s “happenin’ ”.
Proposed Implementation Schedule
A table of NKYCVB’s return on investment with the new strategies in place is listed
below.
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Our analysis of the rate of investment for this education project was developed from the
recent economic impact study of the tourism industry for the Cincinnati USA Regional
Economy. We felt that the statistics including the number of visitors and revenue gave us a good
base to help generate the future profit from this program. In order to budget proportionately for
the next three years we calculated how much tax revenue is generated per visitor. This rate of
revenue is ultimately how we calculated the yearly budgeted revenue for NKYCVB.
We have estimated from the proposed seminar, NKYCVB will be able to attract roughly
80 businesses from all categories of tourism, including hotels, restaurants, attractions, and public
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offices. Additionally, expect a least 500 individuals from these businesses will participate in the
program testing. We also expect for the following two years the same participates will have an
effect on the visitors along with a 50% increase from the prior year’s amount. For example the
first year we hope for 500 participates and the second year we budget to have 750. Of those
participates, we believe they will have a direct effect on at least 3% of the entire area’s visitors.
Finally, of those visitors we estimate at least 10% of those visitors will be more likely to return
to the area.
At this point, those visitors that are likely return will essentially be generating additional
revenue. To establish the total additional revenue we have taken that number and multiplied it
by the earlier mentioned rate of revenue. Since that revenue has been derived from the
Longwoods International study, the revenue covers the entire tri-state area as a whole, not
necessarily focusing on just the southern side of Cincinnati. However, as a benchmark we
referred to statistics listed on the NKYCVB website that focused on the 2008 Marketing Impact.
In 2008, the three-county visitor impact was $306 million and of that total $147 was spent on
lodging. We took that percentage of almost 50% that came from lodging and applied it to this
ROI calculation. Of the total revenue generated we calculated only 50% of that was derived
from hotel revenue. The NKYCVB generates their revenue from the transient room tax
(lodging) at a rate of 1% of rent. With that rate available we took 1% of the total hotel revenue
to come up with a possible budgeted revenue amount for NKYCVB.
Finally we listed the strategy costs related to the incentive purchases and seminar
planning. The total of these costs gradually becomes less and less because we feel as NKYCVB
continues to reach out to all local businesses on a yearly basis, they will eventually contact all of
the local businesses and the seminar guest count will gradually decrease. However, in order to
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recognize the rate of return on this program we took the difference between the revenue we
calculated from the 1% lodging tax and the marketing costs.
The rate of investment for the education project has a very positive outlook because of
the minimal costs the NKYCVB will incur. We the combination of all of strategies we have kept
the costs relatively low compared to the additional revenue this appropriate education will bring
to the participant and the visitor.
Proposed Means of Evaluation of Strategies
Timeline
In order for this program to become a great success for the NKYCVB as well as the local
businesses, we suggest following an 18 month timeline. Initially, we suggest that NKYCVB
begin at once by contacting Text and the City to see what kind of partnership details they can
offer the Bureau. We have reached out to them and they are very eager to meet with NKYCVB
and help get started on generating some revenue for the bureau. We also think it would be best
for the NKYCVB to begin the updating of their social media outlets. First, change the name on
the Facebook page so it is easier to locate and access. This needs to be completed immediately to
avoid any more delays in creating awareness of the bureau and what it has to offer to visitors and
local businesses. Same goes for Twitter and LinkedIn. These outlets are heavily accessed and
NKYCVB needs to take advantage of what the social media world can bring to them. Along
with Text and the City as well as the social media aspect, we are proposing that NKYCVB get in
contact with NKU to pursue the implementation of intern possibilities. These interns can play a
key role in helping market this program.
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Additionally, we are proposing that in the next 3-7 months NKYCVB focuses on
completing the education program as a whole. It is important for NKYCVB to complete every
level of testing and have an established list of business contacts. During this time frame,
NKYCVB will have the chance to work out any technical issues related to the test questions.
Also, within the same amount of time NKYCVB should also begin ordering the incentives,
including the lapel pins and window decals. Another element that should be completed and
ready to be utilized is the coupon template. This template should be ready to insert the
discounts/coupons given by the businesses that are participating.
Lastly, NKYCVB’s long term goal should be the execution of the marketing seminar for
the education program. We hope that the seminar will be thoroughly planned and dates for the
event are scheduled no later than 12 months from now. We propose this event that far out within
our timeline because we realize that it will take some time to make sure all aspects of the event
have been planned accordingly. Additionally, the seminar is very crucial to NKYCVB’s
marketing plan because it is essentially the official launch of the education program.
With this timeline in place, we feel that then necessary steps will be taken in order to
launch this program on time and with success. A timeline is a great way to stay on target with a
project and we feel that this one is realistic. It is a great tool to use and we believe that NKYCVB
would greatly benefit from this outline.
Ensuring Achievements Through Controls
To help ensure that the strategies (above) are achieved, there are a few controls that can
be used to make sure that objectives are being met.
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NKYCVB should hold monthly strategy meetings, with the Commission, to determine if
its delivery with NKY’s Happenin’ is on track and that all items are being worked on in order of
importance. Any issue that may arise should be documented and once an evaluation is
completed, then a solution can be made. Between the staff working on this project and the
Commission, kinks can be worked out and the program to be the best when being launched as
well as in the future.
Another item to use is the balance scorecard. Keeping this document handy will help the
NKYCVB stay focused on all the tasks at hand as well as reminding the target and goal of each
strategy proposed in the analysis plan. If due dates seem to change due to other projects or
additional strategies being added, then a timeline needs to be recreated and known to all bureau
employees to keep the project on track for a launch by January of 2014.
It will be essential, especially early after launch of NKY’s Happenin’, that NKYCVB
reviews all of its operations to ensure everything is fully functional and beneficial to meeting
both the participants and bureau needs and requests. To check the program capabilities, the
company should first perform a beta test of all three tiers of the program, multiple times to
ensure consistency. Once the NKY’s Happenin’ program is launched, the NKYCVB should
survey participants and everyone impacted by the program to determine what changes need to be
made as they are found and bring these issues to each month’s strategy meeting with the
Commission.
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Additional Notes
The NKYCVB has a great competitive advantage with the program and should have no
problem getting it launched by 2014. If any additional help is needed, our team is here to help in
any way that we are able to. Our contact information is as follows:
Amanda Batta
Tiffany Hopkins
Kelly Parker
Nicole Stadtlander
We have had the pleasure of working with the bureau and we look forward to seeing
where NKY’s Happenin’.
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